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The Central Bank mandates a reserve ratio of A commercial bank receives a new deposit of $2,000 from a customer who had it stored under
The Central Bank mandates a "reserve ratio" of A commercial bank receives a new deposit of $2,000 from a customer who had it stored under their mattress for years. If the commercial banks lend out all the money they can using this deposit, how much in total will the "money supply" increase as this new $2,000 works its way through the economy? Question 34 options: $25,000 $16,000 $250,000 $160,000
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